Empresa Agricola San Juan SA

The company’s capital structure is characterized by a debt-to-equity ratio of 0.22, indicating a relatively conservative leverage position. However, its liquidity position is mixed: while it holds PEN 20.6 million in cash and equivalents, its free cash flow is negative at PEN -4.3 million, and its net cash position is negative after subtracting total debt. The current ratio of 2.67 suggests the company can cover its short-term liabilities with its current assets, but the negative operating income of PEN -932,000 and net loss of PEN -1.87 million raise concerns about its ability to sustain operations without external financing. Profitability metrics are weak, with a return on equity of -1.52% and return on assets of -1.12%, both significantly below the industry median for the Fishing & Farming sector. Gross profit of PEN 1.04 million on revenue of PEN 9.63 million implies a gross margin of approximately 10.8%, which is low for a food production business and suggests either high cost of goods sold or low pricing power. The company’s revenue is not segmented by product or geography in the available data, but its exposure to a single economic sector (Fishing & Farming) and the absence of geographic diversification suggest a high concentration risk. This lack of diversification could make the company vulnerable to supply chain disruptions, regulatory changes, or shifts in agricultural commodity prices. Looking ahead, the company’s growth trajectory is uncertain. With a net loss in the latest period and negative operating income, it is unlikely to show revenue growth in the current fiscal year. The outlook for the next fiscal year remains speculative without additional data on cost restructuring, capital investment, or market expansion. Risk factors include a negative net cash position, which could limit the company’s ability to fund operations or invest in growth. The risk assessment flags liquidity as medium and dilution as low, but the negative free cash flow and operating cash flow of PEN 14.0 million (which is positive but insufficient to cover capital expenditures of PEN -8.9 million) suggest the company may need to raise additional capital in the near term. Recent filings and transcripts are not available in the provided data, so no specific events can be cited to explain the company’s financial performance. However, the negative operating and net income suggest potential challenges in cost management, pricing, or market demand.